Ken Will Be So Relieved…

Mattel Inc., the nation’s biggest toymaker, Friday withdrew its $5 billion offer for No. 2 Hasbro Inc., the maker of Monopoly, which had claimed a combination would be rejected on antitrust grounds.

In dropping its offer, the maker of Barbie dolls cited opposition from Hasbro, which also makes G.I. Joe action figures.

Mattel disagreed with Hasbro’s antitrust objections, but said Hasbro’s “scorched earth campaign” had poisoned the prospect for a merger.

“Although we remain confident that the transaction would ultimately be approved by regulatory authorities, we concluded that a transaction between the two companies could only be effected within a reasonable time period if it had your cooperation,” Mattel Chairman John Amerman wrote in a letter to Hasbro Chairman Alan Hassenfeld.

The deal would have created a company seven times larger than its next-biggest competitor.